Can shifting to another electricity supplier help you save money? Well, it undoubtedly can if you take advantage of the digital pavement. The key here is to find the many different suppliers in your state and then compare rates and prices.
There are many websites swear or vow to the comparative shopping for you. However, they might not list all of the available suppliers because they could only list the energy providers they represent. Fortunately, state-run websites have the full list.
Once you get that list, you can then use the following tips and steps to compare different energy providers in your state and decide.
- Can You Switch Energy Companies?
- How to Switch Energy Companies
- When Can You Switch Without Penalty?
- Frequently Asked Questions About Switching Electricity Providers
- 1. Why would you switch to a new electricity provider?
- 2. Does it make any sense to shop around for electricity?
- 3. Are all electricity suppliers reliable?
- 4. Can you compare the prices of various electric companies in your region?
- 5. Will it cost you anything to switch the electricity provider?
- 6. Is it possible to switch a long time before the contract ends?
- 7. Is the switching process going slowly or not?
- 8. What happens when you no longer wish to switch?
- 9. Is it mandatory to inform the current electricity provider?
- 10. Should you worry about the delivery of the new provider?
- 11. Are you going to lose electricity of the new supplier cannot deliver anymore?
- 12. Will you still get a bill from the previous electric service provider?
- 13. Are the energy rates going to change?
- 14. Should you get variable or fixed rates?
- 15. When will you get the new bill?
Can You Switch Energy Companies?
First things first, before we discuss how to change energy providers, know if your state is deregulated. According to the ABACCUs report, there are nine US states that have high levels of shifting power companies in the residential category.
The following are the states included in the report:
- New York
Also, there are other states that are deregulated. However, these states may not have enough or sufficient competition to offer the best options. The following are some of the states listed by Allied Power Services as having deregulated energy:
- Rhode Island
- New Mexico
- New Jersey
With regards to gas services, the following states provide some better options:
- West Virginia
That said, at least fifty states have some better options for some kinds of energy. So, if you reside in a state included in the first list, then you are more likely to make the most out of this article. On the other hand, if your state belongs to the other lists, then changing energy companies may help you save money.
How to Switch Energy Companies
Now that you have an idea which states allows you to switch companies, then it is time to do the action. There are a few steps for switching energy companies. First, you need to compare rates.
If you are going to change provider, you need to ensure you are comparing rates. There are many websites, like www.eligoenergy.com, that provide many state comparison rates such as this electricity rate, price and plan comparison.
Make sure to examine and study the entire contract. Take note that some energy companies will offer you a lower rate for a couple of months to make you switch. And then, raising the rates and prices once you are locked or committed into a contract.
The next step is to compare other services. Keep in mind that you can save by leveraging other possible services, too. That said, if you are interested in green energy, time of use discounts, and more, ensure to look at other potential services with the different energy companies in your state.
Next, ask your existing energy supplier for better rates. Remember, it is always worth the time and effort to ask your current supplier if it’ll offer you better rates or other deals before you change providers. Be sure to quote the deal you want to enroll with another provider and ask if they will match it.
Lastly, switch energy companies. If your current energy supplier can’t offer you a better deal, then it is time to shift companies. Most providers allow you to switch over the phone or online. Also, if you decide to switch, your service will not be interrupted.
When Can You Switch Without Penalty?
You can change energy suppliers without getting penalized near the end of your contract. If you’re in the last forty-nine days of a fixed contract, then your energy company won’t be able to charge you for switching.
Also, if you rent your home, you can change your energy provider without penalties. It is especially true if you are directly paying your gas and electricity bill to your energy provider. Another thing, you can switch energy companies if you have a smart meter. Second-generation meters will work on national infrastructure, allowing most energy companies to operate it.
Energy costs are a huge dilemma in modern-day living. It is a fact! That said, it is a relief when you know that you can save money from your energy bills by switching energy companies, provided that your state is deregulated. Aside from that, consider other saving tips.
You can opt to purchase a smart thermostat to keep your costs low. This device will monitor or oversee your usage patterns and optimize changes in cooling or heating. Also, keep your doors and windows closed so that heat can circulate better. What’s more, try to keep your home open and spacious enough, and clutter-free.
Frequently Asked Questions About Switching Electricity Providers
Being an adult isn’t easy, as you have to take care of so many things. From paying the bills every month to choosing the best services at the best prices for you, there are myriads of things that adults need to manage.
Should you be thinking about switching your electricity provider, you will need to know a couple of things before. The following FAQs will help you decide whether switching is a good idea or not for your situation:
1. Why would you switch to a new electricity provider?
When you’re doing at the right moment, there are plenty of benefits of switching the electricity supplier. Moving home is the most common reason, and it’s when you are aware of the numerous possibilities on the market.
Along with changing the address, you may want to switch because you found a better price. Some providers also care about reducing the carbon footprint, which is why you may want to sign with them. A provider that offers a flexible contract that doesn’t have penalties for terminating the plan earlier than expected is another reason for which customers switch.
There’s also the category of customers that install solar panels, which makes the current plan no longer fits their needs.
As you can see, there are many reasons for which customers switch to a new electricity supplier.
2. Does it make any sense to shop around for electricity?
It’s definitely yes, and it makes perfect sense to shop around for another electricity provider. Remember that the quality of electrons is basically the same. You just need to find the supplier that sells them for less.
3. Are all electricity suppliers reliable?
Most of the time, you shouldn’t worry about reliability. All electricity suppliers must possess a license from the state’s Public Utility Commission. It makes sure that the safety, quality, and maintenance remain the same no matter the way the electric company provides the electricity.
4. Can you compare the prices of various electric companies in your region?
As a matter of fact, it is. The electricity providers are required by law to provide details about the plans through what it’s called the Electricity Facts Label. The list provides information about the fees, terms, conditions, and the energy rates for the program. To take a look at the prices and offers in your region, you need to enter the location and compare electricity products in the list.
5. Will it cost you anything to switch the electricity provider?
As long as you’re going to be at the end of your contract term, it’s not going to cost you when switching the electricity provider. But you should check with the current provider to see if there are any cancellation fees for terminating the contract earlier. Take a look at your agreement.
6. Is it possible to switch a long time before the contract ends?
It’s rather effortless to transfer the service plan to the new address when you’re moving house and remain in the area of service of your current electricity supplier. It’s common for the electricity providers to be understanding when you’re moving out of the service zone. You can explain the whole situation to a representative of the customer service. When you can show proof of your change of address, it’s effortless to skip the cancellation fees.
7. Is the switching process going slowly or not?
Once you’ve signed up with the new electricity provider, it can take anything from a couple of days to a couple of weeks until the plan is active. The timing and process differ from state to state.
8. What happens when you no longer wish to switch?
For the customers sitting on the fence, there’s a window of several days that lets the customer change their mind about the new electricity plan. It’s possible for customers that no longer want to switch or choose another program to terminate/modify the plan without any penalties.
Should you decide on a 100% fixed rate solution and change your mind, you may have to pay cancellation fees with some providers. If you go with a fixed rate, the supplier is buying the power on the market for you.
9. Is it mandatory to inform the current electricity provider?
It’s not your worry at all. As a matter of fact, it’s the responsibility of the new electricity provider to manage the switch on your behalf. You need to pay the bills.
10. Should you worry about the delivery of the new provider?
As long as you’re making the right choice, it would help if you didn’t worry about how the new electricity provider delivers electricity to your business. The current Local Transmission and Distribution Service Provider doesn’t change, continuing to send and distribute electricity to your residence. It should also ensure maintenance in case of an outage. The switch should go smoothly, with no interruption of power whatsoever.
11. Are you going to lose electricity of the new supplier cannot deliver anymore?
Absolutely not. The electric utility in your region has to provide power to your home (it’s required by law), and your electricity provider will go to the provider of the previous resort. (POLR). Every facility has a POLR and works as a temporary electricity provider. You can always decide to remain with the POLR, but you can also switch to another electricity provider.
12. Will you still get a bill from the previous electric service provider?
All switches have to run through the public utility commission (it’s a state agency that makes sure that no electric customers get switched without their knowledge). It’s going to take 45-60 days from the day you enlist with the new provider to the date you get the bills. During the 60 days, you may still get a final bill from the previous electric service provider.
13. Are the energy rates going to change?
It’s not an easy answer and it relates to the new provider’s reliability. Some will provide both fixed and variable rate products. Together with the representative of the new provider, you can choose the best plan according to your risk tolerance. Keep in mind that a 100% fixed protect is going to protect you from the price fluctuation that is present within the energy market.
14. Should you get variable or fixed rates?
When you’re considering a switch, you should also think about the fixed or variable electricity prices. A fixed-rate means that all-inclusive price doesn’t change for a long time (at least three billing cycles) or until the contract terminates. The plan keeps you calm as the prices don’t change throughout the contract. However, when the rates decrease on the market, you watch and wait for the contract to end for benefiting the lower price.
As for the variable price, the all-inclusive price will modify depending on the terms and conditions stated in the affidavit. It’s a great option when the prices go down, but you need to pay more when prices go up.
15. When will you get the new bill?
It depends a lot on the billing cycle, but you should obtain the last bill from the previous provider within 30-45 days after the switch. Afterward, it’s going to take 35-40 days until you get the first bill from the new electricity provider.